KEY STEPS

Investment and financial flows relevant to the development of an effective and appropriate
international response to Climate Change

Introduction:

The UNFCCC secretariat has launched a project in 2007 to review and analyze investment and financial
flows relevant to the development of an effective and appropriate international response to climate
change, with particular focus on developing countries' needs, including their medium-to long-term
requirements for investment and finance.

This work was mandated by COP 12 and is to result in inputs to the fourth workshop under the
Dialogue (27-31 August
2007), and to COP 13 (December 2007), for
its deliberations on the fourth review of the financial mechanism. The inputs for this
discussion are in the form of a large technical background
paper (1990 kB) assessing global investment and financial flows for mitigation and
adaptation sectors as well as three summary papers.

Report to the Dialogue:(748 kB) The report provides a
summary of findings on existing and potential investment and financial flows relevant to the
development of an effective and appropriate international response to climate change, covered in
detail in background paper.

A number of international financial institutions (IFIs), United Nations agencies,
intergovernmental organizations and non-governmental organizations, other relevant agencies, and
representatives of the private sector and civil society have been invited to participate in a
consultative process for sharing their experience and views on existing and planned investment and
financial mechanisms.

The AWG-LCA 2 has requested the UNFCCC secretariat o prepare an update of the technical
paper on investment and financial flows to address climate change, taking into account paragraph 1 of
the Bali Action Plan. The objective is to present analysis that would move forward the
discussion on financing from broad investment and financial needs to options, tols and mechanisms for
enhancing funding for mitigation, adaptation and technology cooperation for an effective response to
climate change.Investment
and financial flows to address climate change: An update (FCCC/TP/2008/7)

21 June 2007, London Consultation with Private Investors on Finance and Investment
Flows to address climate change
20 June 2007, London Consultation with Insurance Sector on Finance and Investment Flows to
address climate change